Brown, Gibbons, Lang & Company | Real Estate Partners is pleased to offer for sale the fee-simple interest in the Arkansas Surgical Hospital (the “Hospital” or “ASH”). The Hospital, totaling approximately 125,909 rentable square feet, is located in North Little Rock, Arkansas, which is five miles northwest of Little Rock’s central business district.
The investment is being offered free and clear of debt with a projected initial net operating income of $3,765,279 and favorable 2% fixed annual rent escalations. This is a rare opportunity to acquire a single-tenant, triple-net leased investment with a highly acclaimed multi-specialty practice group. Furthermore, the Hospital has an exceptional EBITDAR rent coverage ratio of 4.8x for 2014, providing a durable income stream over the term of the lease.
Arkansas Surgical Hospital is a premier central Arkansas surgical hospital with 41 private patient suites and 11 state-of-the-art operating rooms, which are predominantly utilized for orthopedic and spine procedures. The Hospital is also equipped with X-ray, MRI, and CT scanning equipment within its imaging center.
Opportunity Highlights
- 100% occupied Short-Term Acute Care Surgical Hospital with a Year-1 NOI of $3,765,279 and 2% fixed annual rent escalations.
- Built in 2005 and significantly expanded in 2008, the physicians at ASH perform more joint replacement surgeries than any other hospital in Arkansas.
- Strong EBITDAR Rent Coverage ratio of 4.8x with Total Patient Revenue of approximately $185 million for 2014.
- The Hospital has consistently received national recognition including HealthGrades ratings of #1 in Arkansas for Spine & Orthopedic Surgery, as well as CareChex ranking in the top 1% nationally for Spine & Orthopedic care.
- The Hospital recapitalized the operating partnership with Medical Facilities Corporation in 2012 enabling ASH to participate in group purchasing, increasing the Hospital’s EBITDA.
- Physician-aligned hospital with the physicians owning 49% and Medical Facilities Corporation owning the remaining 51% of the Hospital operations.
View the Executive Summary for more information.
Bypass the online summary and directly execute the Confidentiality Agreement
Call for Offers Date: Monday, June 22nd 2015
Submit Offers to: Christopher L. Stai | cstai@bglco.com
Christopher L. Stai, CPA
Managing Director
Brown Gibbons Lang | Real Estate Partners
Direct: 949.936.2665 | cstai@bglco.com
Clinton J. Parker
Managing Director
Brown Gibbons Lang | Real Estate Partners
Direct: 210.804.4852 | cparker@bglco.com
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